Tokyo stocks rise 1.2% on chip rally, dividend deadline; SoftBank dips on Oracle power delay

Because markets in China, South Korea and Taiwan were closed, Tokyo was the primary Asian venue for chip and AI trades, potentially magnifying price swings in stocks such as Tokyo Electron and Advantest. The buying tied to dividends has a clear deadline: after Monday's cutoff, shares normally go ex-dividend and lose that support. Investors are viewing the Oracle power delay as an issue specific to that company rather than a sector-wide problem. Chip-equipment makers rose while SoftBank declined, although repeated energy constraints could alter that perception quickly. When Korean and Taiwanese exchanges reopen, they could either match Tokyo's chip gains or reverse them if sentiment shifts. A strong Nikkei combined with a weak yen also reinforces the idea that interest rate hikes have not yet hurt Japanese equities.

--

With many Asian markets closed for holidays, Tokyo essentially had the region to itself and gained on chip shares and dividend purchases. SoftBank's drop following the Oracle power delay highlighted that the AI infrastructure build-out remains reliant on energy availability.

Summary:

• At the midday break, the Nikkei and Topix each rose 1.2%.
• Chip stocks were the leaders: Tokyo Electron advanced roughly 4%, Advantest gained about 2.5%, and Ibiden added around 5.5% following a nearly 15% surge the prior session.
• Investors were purchasing shares ahead of Monday's deadline to qualify for interim dividends.
• Strategists pointed to robust economic data and central banks' dedication to curbing inflation as supporting factors.
• SoftBank declined approximately 2.5% after Oracle fell on a report concerning a power-related delay at a New Mexico data center.
• Mainland China, South Korea, and Taiwan were closed for public holidays.

On Friday morning, Japanese equities advanced, boosted by AI-related stock gains and purchases ahead of Monday's deadline to secure interim dividends. Both the Nikkei and the broader Topix were up 1.2% by midday. Tokyo handled most of the region's trading as markets in mainland China, South Korea, and Taiwan were closed for holidays.

Chip-related stocks were the main drivers. Tokyo Electron climbed around 4% and Advantest increased about 2.5%, together making the largest contribution to the Nikkei's rise. Ibiden, a manufacturer of components for central processing units, gained roughly 5.5% after jumping nearly 15% in the previous trading session.

According to strategists, the dividend deadline attracted buyers seeking payouts, but the demand for chip stocks was a stronger factor. Strong economic data has also underpinned technology shares. One analyst noted that the unambiguous messages from central banks in the US and Japan about raising interest rates to control inflation had strengthened investor confidence in stocks. This is a noteworthy observation given the recent decline in global bond markets.

Not all AI-related stocks participated in the rally. SoftBank Group dropped approximately 2.5% after Oracle shares declined 3% overnight. This came after a report that Oracle had sent a force majeure notice to a unit of Blue Owl, the developer of a large data center in New Mexico, citing potential delays in obtaining power for the project. SoftBank is a co-investor with Oracle and OpenAI in the Stargate AI infrastructure venture, making it vulnerable to any indication of delays in the build-out.

The Oracle report underscores one of the real-world limitations on AI investment. Power availability has become a bottleneck for large data center projects, and energy procurement delays can extend investment timelines even when demand is robust. For chip equipment makers like Tokyo Electron and Advantest, the market is wagering that such obstacles lengthen the cycle rather than shorten it.

With three of Asia's largest markets closed, Friday's trading provided a preview of how Tokyo operates when much of the region is away. Mainland China will shut again for the week-long National Day holiday from October 1, while Tokyo remains open.